UK Employment Act and the Employment Rights Act: Case of Davids Cave - Essay Example

Business Law Introduction David’s Cave is a very successfully run charitable operation in the UK. The organisation employs fifty people out which thirty are part timers. Even though the organisation itself is successful, its operations and day to day running is not professionally managed. Moreover, since the organisation works for the betterment of ex-offenders by helping to integrate them into the community, most employees find the work quite stressful. Tempers may be short and irrational behaviour can also be found. The case study reveals that two of its employees have been summarily dismissed for alleged misconduct. Another person was warned about the same issue. The three employees were Alison, Darren, and Peter. Alison had been with the organisation from the beginning itself. She is coloured (Algerian/French origin) and also suffers from dyslexia. Alison is a case worker and occasionally (and unofficially) doubles up as an accounts secretary though she does not relish the work. It appears that one of her duties in this area is to be in charge of petty cash. Peter who works in the stores department as an assistant clerk had been with the organisation only for the past six months. Peter is also an assistant clerk even though his position or duties are not mentioned here. Alison was also subject to discriminatory remarks by Peter and Darren when they addressed her “that she is fat, black and blind and should go back to the refugee camp she came from”. It is assumed that Alison has become a citizen of UK since she has been with the organisation for since its inception and that enough time has passed for her to obtain one. Definition of the Topic Area With regard to a legal angel there are three issues here. The first is that a dismissal has occurred here for two employees. The statutes of the UK Employment Act and the Employment Rights Act 1986 can be valid in this case. The second is that one of the employees (Alison) may be covered under the Disability Discrimination Act 1995 (DDA) because she suffers from Dyslexia. As per the Act, “Subject to the provisions of Schedule 1, a person has a disability for the purposes of this Act if he has a physical or mental impairment which has a substantial and long-term adverse effect on his ability to carry out normal day-to-day activities” (Disability, Part I). David’s’ Cave can come under the preview of the Act because, “The DDA covers different sorts of situations, for example, employment, goods, services and facilities, transport, education and premises” (What is the DDA). Many managers do not appreciate the problems caused by this illness and may result in treating people suffering from it unfairly, thinking that poor performance is intentional and not caused by the disease. People suffering from dyslexia can have certain problems like not being able to follow instructions properly, understanding maps and charts, and “scheduling work and meetings and keeping track of appointments” (Out-Laws, 2005). The third issue is that both Peter and Allison were fired without being provided with the statutory notice about dismissal at least a week in advance. As per section 86(1) of the Employment Rights Act “The notice required to be given by an employer to terminate the contract of employment of a person who has been continuously employed for one month or more: - (a) is not less than one weeks notice if his period of continuous employment is less than two years” (Section 86, Part IX, Termination of Employment). If Alison had been an employee for more than twelve years, she should be given two week’s notice. The legal implications for all concerned parties will be provided later in this paper. Rational and best practices It can be seen from the case that there are many things wrong in the day to day running of David’s Cave. The work is stressful and there appears to be no procedures to tackle the issue. The trustees have tight control over the organisation and are in no mood to change the way the organisation is run. The practice resorted to by the management in case of dealing with employee problems is dismissal of the employee. There are a few areas in which the organisation can improve by bringing prudent management practices. The first is the appointment of a human resources manager HRM, to manager the employees more fruitfully. This can be later developed into a special HR department if necessary. It is difficult to give a comprehensive definition of the term since the concept has broad and wide ranging implications. But the following definition will provide an idea about the responsibilities of an HR manager. HR functions aim at “Unification of personnel management techniques  used in a more integrated way so that performance is improved through a ‘cycle’ of strategic interventions covering selection  appraisal  reward and development”(Tanova, sl.2). A proper HR strategy can solve many of the staff problems in the organization. As a part of this strategy, each staff should be provided with a comprehensive job description. In case Alison has to double up as an accounts secretary, the matter should be included in her job description. The prospect of integrating ex-offenders into the society can be a demanding and stressful job. This could be the reason why employees are seen to loose their temper quite often resulting in shouting at and accusing each other. An HR manager would be able to diffuse such situations in an amicable manner. The person should also be in charge of hiring and retaining and not in just arbitrary dismissal of employees. Training on management of stress by professionals should be a regular feature in David’s Cave. An interesting observation about stress can be seen in the following observation which goes “The key to optimal productivity seems to be moderate levels of stress” (Stress and Productivity). Psychology training on handling of ex-offenders should also be included in the organisation’s practices. Analysis of case scenario Alison was asked one Friday evening to bank the petty cash which she did. But she had inadvertently left some amount of petty cash (40 pounds in this case) unlocked in her drawer. This had happened often in the past and her manager had warned her in the past. This could be due to her dyslexia, though it is not mentioned in the case. The money was missing when the accounts manager turned up on Monday morning. She accused Alison of taking the money on the insistence of Peter and Darren. A verbal duel ensued which ultimately ended in both Alison and Darren being dismissed and Peter let off with a warning. Statute and case law As mentioned earlier, proper notice of one week has to be given to employees in case of dismissal, which had not happened in this instance. But, according to the Employment Rights Act “this section does not affect any right of either party to a contract of employment to treat the contract as terminable without notice by reason of the conduct of the other party” (Section 86). It is true that Alison had by her conduct on many occasions be held irresponsible. She had done the same mistake on a number of previous occasions and can be held responsible for the loss of money. If Darren, Peter, or Allison had actually stolen the money, the issue becomes more serious and can definitely be dismissed without the customary notice. In the case of Allison her employer can reasonably prove that she was incompetent in her job. But in the case of theft, the employer must show that either or both of them had committed the theft. Section 98(1) the above act clearly states that “In determining for the purposes of this Part whether the dismissal of an employee is fair or unfair, it is for the employer to show— (a) the reason (or, if more than one, the principal reason) for the dismissal” (General). An innocent employee can claim unfair dismissal in this case. If Alison is dismissed on ground of incapability to do work, she could resort to the provisions of the Disability Discrimination Act 1995 and probably get a reprieve. She could also claim damages for racial discriminatory statements from Peter and Darren. Future good practices It is better that the David’s Cave accept the suggestions and recommendations put forth in rational and best practices section given above. There are many things wrong in the running of the day to day affairs of the organisation and implementing the three suggestions can help to correct the situation to a large extent. It is inevitable since the organisation itself is successful and growing. Otherwise more and more problems will crop up and many more Alisons and Darrens will find themselves out of a job. Summary An introduction of the David’s Cave employee scenario was given first. The topic area under which the situation falls was given next. It is seen that employee rights may have been possibly violated by the dismissal. The issue of disability due to dyslexia can also be taken up. A few recommendations for rational and best practices in the organisation were given next. The case was analysed and the possible legal implications was also put forth next. The way ahead for employees and employers was given next. The possible future good practices were given last, by recommending that the suggestions given for improvement be implemented in David’s Cave. Reference Disability Part I, Disability Discrimination Act, 1995, The UK Statute Law Database, Office of the Public Sector Information, Viewed 25 January, 2009, from General, Chapter I: Right not to be unfairly dismissed- Part X: Unfair Dismissal, Office of the Public Sector Information, Viewed 25 January, 2009, from Out-Laws, 2005, TUC Reports on Dyslexia in the work place, out-law.com. Viewed 25 January, 2009, from Section 86, Rights of employer and employee to minimum notice, Part IX- Termination of Employment, Employment Rights Act 1996 s. 86- Rights of Employer and Employee to Minimum Notice, emplaw.co.uk, Viewed 25 January, 2009, from Section 86, Part IX, Termination of Employment, Employment Rights Act 1996 s. 86- Rights of Employer and Employee to Minimum Notice, emplaw.co.uk Viewed 25 January, 2009, from Stress and Productivity, Stress Definition and Theory, Systematic Stress Management: The Proven Way to Relax, Viewed 25 January, 2009, from Tanova Cem, International Human Resource Management: Theories and Models, Viewed 25 January, 2009, from What is the DDA, Your Rights, RNIB: Supporting Blind and Partially Sighted People, rnib.org, Viewed 25 January, 2009, from Read More